Transcript of "Retailing & Wholesaling"

2.
Objectives
1.
2.
3.
4.
5.
6.
7.
8.
Explain the wheel of retailing.
Discuss how retailers select target markets.
Show how the elements of the marketing mix apply to
retailing strategy.
Explain the concepts of retail convergence and scrambled
merchandising.
Identify the functions performed by wholesaling
intermediaries.
Identify the major types of independent wholesaling
intermediaries and the situations appropriate for each.
Compare the basic types of direct marketing and non-store
retailing.
Explain how much the Internet has altered the wholesaling,
retailing, and direct marketing environments.
2

3.
What is
What is
Retailing?involved in selling goods or
Retailing?
 All the activities
services directly to final consumers for their
personal, non-business use.
 Retailers
- businesses whose sales come
primarily from retailing.
 Retailers
can be classified as:
– Store retailers such as Giant, Bata, Isetan.
– Nonstore retailers such as the mail, telephone,
and Internet. (Kayla Baverly Hill, Smart Shop,
vending machine)
3

5.
Wheel of Retailing
Explains the patterns of change in
retailing.
 A new type of retailer gains a
competitive foothold by offering
customers lower prices.
 Maintains profits by reducing or
eliminating services.
 Once established the innovator adds
more services and prices gradually rise.

5

12.
2.c. Pricing Strategy
Markup and Markdown
 The
amount that a retailer adds to a
product’s cost to set the final selling price.
 The amount of the markup typically
results from:
1. The services performed by the retailer.
2. The inventory turnover rate.
 Typically
state markups as percentages.
 Marketers determine markups based
partly on their judgments.
12

20.
Classification by Product Lines
1.
1.
1.
Specialty store typically handles only part of a single
product.
•
Stocks in considerable depth or variety.
•
Typically carry convenience and shopping goods.
Limited-line retailers
•
Customers find a large assortment of products
within one product line or a few related lines.
•
Typically develops in areas with a large enough
population to sufficiently support it.
•
Ex: Category Killers
General Merchandise retailer
•
Carry a wide variety of product lines that are all
stocked in some depth.
•
Ex: Variety store, department stores, Mass
merchandise store (off price retailer, hypermarket
and supercenters, and catalog retailer)
26

22.
What is Wholesaling?
What is Wholesaling?
All
the activities involved in
selling goods and services to
those buying for resale or
business use.
Wholesaler
- those firms
engaged primarily in wholesaling
activity.
29